Versa Bancorp offers investors the intrinsic value of a highly risk-mitigated bank with the operating leverage and high growth potential of a technology company. We are at an inflection point for operating leverage, driven by strong expected growth in credit assets.

Credit asset growth is expected to driven predominantly by our Structured Receivable Purchase Program (SRP), which is an essential service the point-of-sale financing industry and there of benefit to both consumers and small business.

The ramp up of the Real-Time Structured Receivable Purchase Program (SRP) in the underserved multi-trillion-dollar U.S. market, as well as accelerated growth from the Real-Time SRP in Canada, is expected to drive outsized increases in efficiency, profitability and return on common equity.

Capitalizing on the Digital Asset Revolution

We also expect to capitalize on our unique, proprietary technology that enables highly encrypted Digital Assets. Digital Assets combine the safety of traditional banking with the efficiency, cost savings, security, and flexibility of blockchain technology, providing superior safety and security for the natural evolution of stablecoins in the regulated banking world – tokenized deposits.

Developed by a bank, for banks, within the context of federal banking regulation, our tokenized deposit technology is a proven solution that exists today. We have initiated the commercial phase in the United States for its proprietary tokenized deposits in full compliance with U.S. federal banking regulations. Our Real Bank Tokenized Deposits (RBTDs^TM) represent a new source of inexpensive deposits, providing an additional source of incremental net income, initially through investment in zero risk-weighted U.S. treasury bills, which as zero percent risk-weighted assets are meaningfully accretive to the Bank’s return on common equity. Following an initial period of T-bill investment, our RBTDs^TM will support significant expected growth of our Structured Receivable Program in the United States.

Issuing our own RBTDs^TM in the U.S. will also position the Bank to pursue its strategy to provide its proprietary, market ready, tokenized deposit technology to the thousands of community and regional banks in the U.S. challenged by the flow of deposits to alternative, non-bank-issued, blockchain-based deposit and payments alternatives. We look forward to providing our RBTD^TM technology in compliance with federal regulation to address the rapidly increasing demand by small- and medium-sized U.S. banks for a tokenized deposit, quickly, efficiently and cost-effectively, with industry leading security.

Our RBTD^TM technology is also broadly applicable to other currencies and the Bank is positioned to similarly advance to the commercial phase in Canada when all applicable regulatory and business environments are conducive to doing so.

Transformational Reorganization Expected to Further Enhance Shareholder Value

Versa Bancorp’s recently completed realignment to that of a standard U.S. bank framework not only supports the growth opportunities in both our Real-Time Structured Receivable Program and Digital Asset/Tokenized Deposit technology and capabilities but will also contribute to enhanced shareholder value through increased investor visibility and liquidity for our stock, eligibility for inclusion in certain stock indices, improved access to capital markets, further risk mitigation and even greater cost efficiencies.